SOURCE: Brower Piven, A Professional Corporation

March 12, 2010 16:56 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in Smithtown Bancorp, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the April 26, 2010 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - March 12, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Smithtown Bancorp, Inc. ("SBI" or the "Company") (NASDAQ: SMTB) during the period between March 13, 2008 and February 1, 2010, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than April 26, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard.

The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that, throughout the Class Period, defendants failed to disclose that the Company's financial results were artificially inflated due to SBI's material understatement of its loan loss reserves and SBI's failure to state certain of its assets at their true fair value; that the Company improperly delayed recognition of impaired assets that inflated its reported income and asset quality; that the Company's internal and disclosure controls were deficient; and that the Company, through a subsidiary, engaged in unsafe and/or unsound banking practices. According to the Complaint, after the Company issued a press release on February 1, 2010 announcing its fourth quarter and full year 2009 results, including a loss of $19.8 million (or $1.34 per fully diluted share) for the fourth quarter of 2009, the value of SBI shares declined significantly.

If you have suffered a net loss for all transactions in Smithtown Bancorp, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact